Controlled and slow release fertilizers are fertilizers that release nutrients over a longer period of time as compared to the conventional fertilizers. These types of fertilizers are produced either by the condensation reaction or by encapsulation or coating of the fertilizers granule with polymers, sulfur and other types of coatings.
The longevity of the controlled and slow release fertilizers is dependent on its water solubility, permeability of the coating and the temperature of the soil where it is applied. The slow and controlled release of nutrients helps plants grow efficiently, thereby resulting in higher yields.
Controlled and Slow Release Fertilizers are used in a wide range of applications. Major applications of controlled and slow release fertilizers include agricultural areas, commercial lawns and turfs and others.
These can be subdivided into nurseries & ornamentals, paddy rice, vegetables, fruits, turf, field crops, arable crops, trees, flowers, garden, vegetables, land scape, agricultural crops, green house and tea, amongst others. Controlled release fertilizers are witnessing higher demand from turf and ornamental application as compared to others.
The most common type of controlled and slow release fertilizers are urea reaction products and encapsulated/ coated products. Encapsulated/coated products can be further divided, on the basis of type of coat, into polymer coated, sulfur coated, hybrid coated and others.
Encapsulated/ coated fertilizers are comparatively expensive than the encapsulated/ coated products. Therefore, these products are majorly consumed for expensive crops and commercial applications, such as lawns and turfs.
The controlled and slow release fertilizers market can be segmented, on the basis of its applications, into agricultural, commercial lawn and turf and other applications. Agricultural applications in the controlled and slow release fertilizers market can be sub-divided into cereals & grains and fruits & vegetables.
The agricultural segment accounted for the largest share of controlled and slow release fertilizers and is also projected to grow at a high CAGR during the forecast period.
The global controlled and slow release fertilizers market is estimated to be valued at US$ 4.2 Bn by 2018 end and is expected to reach US$ 10.1 Bn by the end of 2028 while expanding at a CAGR of 9.1% over the forecast period.
The global controlled and slow release fertilizers market is anticipated to represent incremental opportunity of over US$ 5857 Mn between 2018 and 2028.
Global Controlled and Slow Release Fertilizers Market Is Expected to Grow at a Fast Rate over the Forecast Period
Controlled and slow release fertilizers are generally used as specialty fertilizers in applications, such as agricultural applications, lawn & turf, fruits and vegetables, nurseries and gardens, among others. Thus, the agriculture industry will hold a dominant share in the demand for controlled and slow release fertilizers.
As per the FMI analysis, the demand from agricultural segment is estimated to grow in tandem with the growing population and agricultural developments in developing economies, such as China and India.
The global agricultural industry is anticipated to register a high growth rate of over 3.8% due to increasing population, change in eating habits and improving economies of developing countries.
Moreover, increasing penetration of controlled and slow release fertilizers in the developing markets is anticipated to provide impetus to the growth of the controlled and slow release fertilizers market during the forecast period.
However, the use of new technologies in the production of controlled and slow release fertilizers makes them more expensive than conventional fertilizers. Similarly, lack of awareness among growers and farmers about the benefits of controlled and slow release fertilizers may act as a decelerating factor for the market growth.
Also, the subsidies provided by the government on conventional fertilizers may also act as a restraining factor for the growth of the controlled and slow release fertilizers market.
Asia Pacific Excluding Japan (APEJ) Dominates the Global Controlled and Slow Release Fertilizers Market While MEA Is Pegged to Be a Fast Growing Market After APEJ During the Forecast Period
From a regional perspective, the controlled and slow release fertilizers market is dominated by the APEJ region owing to the high presence of producers and consumers of controlled and slow release fertilizers.
APEJ is also projected to be the fastest growing region during the forecast period. This can be attributed to the presence of emerging economies, such as China and India, and agriculture-dependent countries, such as India, Indonesia, Pakistan and China, in the region.
Moreover, almost 60% of the global population resides in China and India. Fast-paced infrastructural developments in this region coupled with growing agricultural production are anticipated to help APEJ remain dominant in the global controlled and slow release fertilizers market during the forecast period.
The agricultural segment is anticipated to have a higher impact in the APEJ controlled and slow release fertilizers market. Given the applications of encapsulated /coated controlled and slow release fertilizers in agricultural and commercial crops applications, the segment is expected to largely dominate the APEJ controlled and slow release fertilizers market over the forecast period.
A prominent share of the demand is met by domestic manufacturers and the region is also one of the main exporters of controlled and slow release fertilizers. The region mainly exports to MEA, Europe and North America & Latin America.
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Prominent Manufacturers Hold Key Share in the Global Controlled and Slow Release Fertilizers Market
The global controlled and slow release fertilizers market is consolidated due to the presence of only a few local manufacturers. Despite this, prominent manufacturers in the controlled and slow release fertilizers market have been reported to hold around a quarter of the global controlled and slow release fertilizers market share.
The regional controlled and slow release fertilizers markets show variations in terms of supply of controlled and slow release fertilizers. While a significant amount of controlled and slow release fertilizers produced in APEJ is exported, majority of the controlled and slow release fertilizers produced in Europe is consumed within the region with the rest is exported to the Americas.
The regional markets consist of numerous local manufactures engaged in the sales of controlled and slow release fertilizers.These manufacturers are all listed under the Tier 3 category of the global controlled and slow release fertilizers market.
The prominent manufacturers holding a vital share in the controlled and slow release fertilizers market are listed under the Tier 1 category of the global controlled and slow release fertilizers market. The remaining manufacturers are listed under the Tier 2 category.
The supply and demand of controlled and slow release fertilizers in different regions depends upon the macro-economic factors affecting the controlled and slow release fertilizers market.
Moreover, the shift in demand from conventional fertilizers to specialty and organic fertilizers can be attributed to increasing demand for food and availability of less fertile land. Increasing usage of fertilizer additives and biostimulants for improving yield and production has increased the requirement of agrochemicals from global perspective which in turn has positively influenced demand for contrlled and slow release fertilizers market.
The market is witnessing a large number of acquisitions and mergers. Big players in the market are trying to grab market share by acquiring smaller players. Acquisition strategy has accounted for more than 35% of the total developments in the market in the last 8 years.
Controlled and slow release fertilizer manufacturers are also trying to penetrate the untapped market through joint ventures and partnerships. A number of capacity expansions have also been observed in the market which depicts growing demand for controlled and slow release fertilizers.
High growth markets, such as India and China, are the centers for the growth for controlled and slow release fertilizers. Hence, to cater to the demand for controlled and slow release fertilizers, prominent players have been expanding their capacities of production.
For instance, ICL is expanding its operations in South Carolina, US. This will support the growth of the specialty fertilizer business segment of ICL in the US.
The demand for encapsulated/ coated products has been largely dominating the controlled and slow release fertilizers market and is expected to represent well over 79% of the total market share, in terms of value, throughout the forecast period.
Some of the players reported in this study on the global controlled and slow release fertilizers market include Kingenta Ecological Engineering Group Co. Ltd., Israel Chemicals Ltd (ICL), Yara International ASA, Agrium Inc., Haifa Chemicals Ltd., Koch Fertilizer, LLC, and AGLUKON Spezialduenger GmbH & Co. KG., among others.
Controlled and Slow Release Fertilizers Market: Segmentation
- Urea Reaction Products
- Encapsulated/ Coated
- Commercial Lawn and Turf
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific Excl. Japan
- Middle East and Africa